IX,"" 


Duke  University  Libraries 


D032 


2487R 


Jlozb 


2? 


LETTER  OF  THE  SECRETARY  OF  THE  TREASURY. 

In  response  to  resolution  of  the  House. 


CONFEDERATE  STATES  OF  AMERICA, 

Treasury  Department, 
Richmond,  Sept.  15th,   1862. 
Hon.  Thomas  S.  Bocoi  k. 

Speaker  House  Representatives,  C.  S.  A.  : 

Sir  : — In  response  to  the  resolution  of  the  House  of  Representa- 
tives, requesting  the  Secretary  of  the  Treasury,  to  inform  the  House 
what  legislation  (if  any,)  is  required  to  facilitate  his  Department  in 
meeting  the  requisitions  of  the  proper  officers  on  the  Treasury.  I 
respectfully  report : 

That  by  reference  to  my  report  made  at  the  ouening  of  Congress, 
it  will  be  seen  that  the  chief  supplies  furnished  by  Congress  to  pay 
requisitions  consisted  of  bonds,  and  that  they  could  not  be  sold  to  b 
sufficient  extent  to  raise  the  money  required,  and  that  if  the  requisi- 
tions then  outstanding  were  paid  in  Treasury  notes,  they  would  re- 
quire more  than  the  department  was  authorized  to  issue.  The  first 
legislation,  therefore,  which  is  required,  is  an  extension  of  the 
authority  to  issue  Treasury  notes,  as  recommended  in  the  said  re- 
port. 

I  have  taken  it  for  granted  that  such  authority  Would  be  given,  and 
have  pressed  forward  every  practicable  arrangement  for  the  issue  of 
the  notes.  The  difficulties  in  the  way  are  all  mechanical.  We  have 
had  neither  engravers,  nor  lithographic  printers,  nor  machinery,  nor 
materials  in  our  country,  sufficient  to  prepare  the  quantity  of  notes 
required.  Every  effort  has  been  made  to  supply  these  deficiencies, 
and  establishments  were  built  up  and  in  full  operation  at  Richmond, 
which  promised  to  supply  the  demand,  when  they  had  to  be  broken 
up  and  removed  to  Columbia  on  account  of  the»  approach  of  the 
enemy.  The  delay  created  by  this  change,  and  by  the  incidental  dif- 
ficulties attending  a  transportation  of  everything  both  ways,  and  also 
by  the  management  of  these  concerns  at  such  a  distance,  has  greatly 
retarded  the  operations  of  the  Department.  But,  such  difficulties 
cannot  be  relieved  by  legislation.  We  arc  pressing  forward  the  work- 
men to  the  utmost  diligence  as  the  only  remedy  ;  and  as  soon  a&  it 
can  bo  done  without  injury  to  the  public  interests,  the  establishments 
will  be  returned  to  Richmond. 


(iiii'  other  source  of  delay  is  in  the  great  number  of  Clerks  re- 
quired to  si Lfu  and  number  the  notes.  Notwithstanding  the  great 
objections  which  exist  against  so  many  various  signatures  to  notes 
n -«■<  1  a>  currency,  I  have  been  compelled  to  employ  snch  a  number  of 
signers,  that  it  becomes  impossible  for  the  public  t<>  become  familiar 
with  the  signatures.  But,  even  this  great  number  is  not  sufficient  at 
present  to  Bupply  the  calls  upon  the  Treasury.  1  have,  therefore. 
already  recommended  in  Congress  t"  make  a  change  in  tin-  law  and  to 
authorize  the  printing  of  the  signatures. 

The  demands  upon  ihr  Department  have  lately  been  greatly  in- 
creased by  the  necessity  of  calling  in  issues  which  have  been  counter- 
feited. It  i-  necessary  t"  furnish  each  Depository  with  a  large 
amount  of  notes,  to  exchange  with  the  holders  of  those  called  in; 
and  this  necessarily  diminishes  the  number  of  notes  applicable  to  the 
daily  requisitions,  while  it  requires  a  considerable  increase  of  force  at 
the  Depositories  to  perform  the  duties  required  there.  These  difficul- 
ties can  only  be  removed  by  more  extended  and  complete  organization 
of  this  branch  of  the  Department,  and  to  that  end  1  have  already  re- 
commended that  it  he  made  by  Congress  a  separate  bureau. 

It  is  proper,  also,  that  I  should  state,  that  under  the  existing  mode 
of  making  requisitions,  there  must  necessarily  he  delay  in  meeting 
them,  'flie  printing,  signing,  and  issue  of  notes,  must  be  based  upon 
the  average  daily  wants  of  the  government.  It  sometimes  happens 
that  the  requisitions  made  in  a  single  day,  exceed  the  average  supply 
of  a  whole  week  or  ten  days;  and  during  this  period,  other  requisi- 
tions of  a  more  pressing  character  are  sent  in  with  a  request  that 
they  be  preferred  to  all  others.  This,  of  course,  suspends  the  pay- 
ments for  so  much  additional  time,  and  there  is  no  remedy  possible, 
but  to  increase  the  means  of  supply  to  the  largest  extent  of  this  ir- 
regular demand,  a  remedy  which  would  he  very  expensive  and  im- 
practicable. 

All  of  which  is  respectfully  submitted. 

c.  <;.  memmln<;er, 

Secretary  of  Treasury. 


l%r~> 


~ 


COMMUNICATION  OF  THE  SECRETARY  OF  THE  TREA- 

SURY. 


Treasury  Department,  C.  S.  A.,  ) 

Richmond,  Oct.  3,  1862.       \ 

Hon.  T.  S.  Bgcock, 

S/*  aker  of  the  Housz  of  Representatives : 

Sm :  Herewith  I  respectfully  communicate  consolidated  estimates 
of  the  various  Departments  of  the  Government,  for  the  month  of 
January,  eall.d  for  by  a  resolution  of  Congress.  In  conformity  with 
the  I  nv,  I  now  respectfully  "report  the  ways  and  means  to  provide 
for  the  same  " 

By  the  act  passed  at  the  present  session  entitled  an  act  to  provide 
for  the  further  issue  of  Treasury  Notes,  the  Secretary  ot  the  Treasury 
is  authorize  1  to  issue  Bonis,  certificates  of  stock  and  Treasury  Notes 
in  such  aelitional  amount  as  may  be  required  to  pay  th2  appropria- 
tions made  by  Congress  ar.  its  last  and  present  session.  As  soon, 
therefore,  as  appropriations  are  made  for  payment  of  these  estimates 
at  the  present  session,  the  authority  follows  to  issue  Bonds  or  Trea- 
surv Notes  to  provide  for  them,  and  no  further  legislation  on  that 
score  is  necessary. 

The  great  increase  which  these  estimates  will  make  in  the  issue  of 
Treasury  Notes,  renders  it  the  duty  of  Congress  to  provide  some  ad- 
d  tional  means  to  sustain  their  credit.  There  are  indications  of  various 
kinds  that  some  support  of  the  currency  will  soon  be  required.  The 
large  amount  of  Bonds  which  has  been  sold  in  the  last  month  proves 
that  the  credit  of  the  Government  has  improved  instead  of  being  im- 
pure 1.  We'  have,  therefore,  to  look  to  some  other  cause  for  the  ef- 
fects upon  the  currency. 

This  cause  is,  in  my  opinion,  to  be  found  in  the  amount  .">f  issues  of 
currency  notes.  The  whole  amount  of  issues  on  the  3Jth  September, 
were $283,226,890 

Of  these  the  interest-bearing  notes  are  • 

as  follows : 

7.3!)  int 57,160,000 

3.65  int 2,021,100       59,181,100 

$224,045,790 


To  this  amount  must  be  added  the  unexpended  appropriations  of  the 
last  session  and  the  appropriations  of  the  present  session,  in  order  to 

ascertain  the  condition  nt'  things  for  which  Congress  is  now  to  provide. 
These  expenditures  will  certainly    add  about    $I5'.),(HH)  IMH1  to  the 

above  aggregate,  and  make  a  total   of   l.J.J. (KM LIMK).      Allowing  a  rea- 

son  ible  proportion  of  this  sum  to  be  taken  in  Bonds  and  Interest  notes, 
there  will  remain   of  g  currency   not  's,  an    aggregate  of  about 

<.;{  i. .ri.».uti:i. 

'  If  we  extend  our  view  thr.vigh  the  months  I  I  rusiry,  March  and 
April,  this  aggregate  must  be  increased  a:  the  rate  of  forty  millions 
I»er  month,  and  it  is  appaient  to  every  mind  that  unless  every  possi- 
ble means  of  absorption  be  applied,  the  cu  r  ncy  must  become  serious- 
ly depreciated. 

llie  «;ir  L.t.\  which,  1  presume.  Congress  will  impose  at  the  annua, 
sion,  will  not  be  received  until  May  or  June  next.    It  is  important  th-it 
before  that  period  some  other  absorbent  should  be  applied,  for  it  is  far 
more  difficult  to  recover  a  falling  currency  than  to  sustain  a  sound  one. 

]t  was  to  carry  out  views  of  this  kind  that  the  produce  loan  from 
the  planters  was  devised.  The  effect  of  that  loan  was  simply  to  con- 
veit  currency  into  bonds.  Unfortunately.it  has  not  been  taken  to 
such  an  extent  as  to  produce  the  impression  on  the  currency  which 
was  intended. 

The  whob  estimated  value  of  that  loan  is  only  about  eighteen  mil- 
lions of  dollars;  and  if  from  this  sum  be  deducted  tin  value  of  pro- 
duce which  has  been  destroyed  or  will  not  be  forthcoming,  fifteen 
millions  will  be  i's  utmost  extent.  It  is  obvious,  therefore,  that  some 
other  means  must  be  added  to  produce  a  sensible  effect  upon  the  cur- 
rency. 1  cannot  too  ea  nesdy  urge  upon  Congress  the  adoption  of 
some  measure  which  will  draw  back  into  the  treasury,  within  the  next 
three  months,  from  fifty  to  one  hundred  millions  of  Treasury  Notes. 

Respectfully  submitted. 

0.  (i.  MKMMINGER. 

Secretary  of  tht  Treasury. 

October,  4,  1«G2. 

N.  15.  This  report  has  been  delayed  by  reason  of  the  fact  that  the 
estimates  from  all  the  other  Departments  were  not  received  until  late 
yesterday. 


Hollinger  Corp. 
pH8.5 


